About Economics

Following are some of the multiple choice questions on the Economics with answers that will help the students in developing their knowledge.

Economics MCQ

1. The choice between two goods or services is known as ___________________.

  • scarcity
  • opportunity cost
  • economic choice
  • economic specialization

2. What is a need?

  • Nothing
  • Something you have to have to live
  • Something you would like to have
  • Ice cream

3. What is a want?

  • A person
  • Something you would like to have but don't need to live
  • Purple
  • Something you need to live

4. What do you need to produce other goods and services?

  • consumer goods
  • capital goods
  • nondurable goods
  • Gross Domestic Product (GDP)

5. Gross Domestic Product (GDP) refers to the dollar value of all final goods, services, and structures produced anywhere in a single year for a country.

  • True
  • False

6. What is a high price a signal for?

  • government to enact price controls
  • producers to offer less & consumers to buy more
  • producers to offer more & consumers to buy less
  • suppliers to reduce sales until prices peak

7. When the quantity supplied is greater than the quantity demanded

  • a shortage has occurred.
  • a surplus has occurred.
  • it doesn't mean anything.
  • government intervenes.

8. Trying to satisfy unlimited wants with limited resources defines _____ and is the fundamental problem of economics.

  • scarcity
  • needs
  • wants
  • microeconomics

9. A _____ economy's government makes all of the major economic decisions.

  • traditional
  • mixed
  • market
  • command

10. This type of economy discourages new ideas and new ways of doing things.

  • traditional
  • market
  • mixed
  • command

11. The thing that you give up (the next best alternative) when you make a decision is known as

  • Opportunity Cost
  • Scarcity
  • Incentive
  • Choice

12. Man-made resources used in the production process i.e. machines in a factory.

  • Labour
  • Capital
  • Household
  • Revenue 

13. The term of market economy in which the productive resources are privately owned

  • capitalism
  • mixed economy 
  • command economy 
  • none of them

14. Who was the writer for Wealth of Nations

  • Plato
  • Karl Marx
  • Paul Samuelson
  • Adam Smith

15. Tools we use to make products

  • capital resources
  • human resources
  • natural resources
  • entrepreneurs

16. The resources required to make a product (good or service)

  • economics
  • consumption
  • four factors of production
  • scarcity

17. Something we use

  • resource
  • scarcity
  • demand
  • supply

18. Something we pay to use fora certain amount of time

  • services
  • goods

19. The study of resources such as money, materials, and labor

  • economics
  • services
  • producers
  • goods

20. Which of the following is not a service?

  • Dry Cleaner
  • Car Wash
  • Clothes
  • Babysitter

21. Income set aside for unexpected expenses

  • savings
  • goods
  • services
  • producer

22. The action of fulfilling a need for income

  • services
  • need
  • want
  • consumer

23. Extras that make life more enjoyable

  • want
  • need
  • producer
  • savings

24. Goods naturally found on the earth

  • natural resources
  • supply
  • demand
  • services

25. A good made in another country and brought into the United States

  • import
  • scarcity
  • supply
  • spending

26. _____________ are things that people make or use to satisfy their needs and wants.

  • Goods
  • Services
  • Producers
  • Consumers

27. ________________ are activities that satisfy people’s needs and wants.

  • Goods
  • Services
  • Needs
  • Wants

28. ______________ are people who use natural resources, human resources, and capital resources to make goods or provide services.

  • Producers
  • Services
  • Goods
  • Resources

29. ________________ are people who use services or buy goods.

  • Producers
  • Resources
  • Pretty
  • Consumers

30. _______________ resources are materials that come from nature.

  • Special
  • Natural
  • Human
  • Capital

31. ______________ resources are people working to produce goods or provide services.

  • Capital
  • Human
  • Natural
  • Manufactured

32. ________________ resources are the things that people use to make the goods or provide their services.

  • Natural
  • Capital
  • Company
  • Human

33. The good or service that you give up when you make an economic choice is called _____________________.

  • opportunity cost
  • economic choice
  • economic interdependence
  • economic specialization

34. Two or more people depending on each other for goods and services is called __________________________.

  • economic specialization
  • scarcity
  • economic choices
  • economic interdependence

35. Being an expert in one job, product, or service is called ___________________.

  • economic interdependence
  • economic specialization
  • opportunity cost
  • scarcity

36. A farmer would fall under which economic activity?

  • Primary
  • Secondary
  • Tertiary

37. Type of Economy where Supply and demand determine prices with little gov intervention

  • Command
  • Market
  • Mixed
  • Traditional

38. In a ______________ economic system, customs and traditions determine what and how to produce

  • traditional
  • market
  • command
  • mixed

39. In a ______________ economic system, the government owns resources and controls production, prices, and wages

  • traditional
  • market
  • command
  • mixed

40. What is a consumer?

  • a person who takes things
  • a person who purchases goods and services for personal use
  • a person who takes good away
  • the economic factors affecting the price, demand, and availability of a commodity

41. What is a producer?

  • a person who gives goods away
  • things people would like to have
  • the exchanged of goods and services without the use of money
  • a person, company, or country that makes grows, or supplies goods for sale

42. What is a free market economy?

  • An economy based on supply and demand with little or no government control
  • The international exchange of goods
  • An economy in which decisions are made by the government
  • An economy that is communist

43. What type of economy does the United States have?

  • traditional
  • mixed
  • command
  • market

44. Which type of economy involves trading, and doesn't usually use money?

  • traditional
  • command
  • mixed
  • market

45. What is Gross Domestic Product?

  • Goods, services, and intermediate products bought by people in other countries.
  • the total value of goods produced and services provided in a country during one year
  • The amount of output the average worker can produce in an hour.

46. What is profit?

  • the amount of an item you have
  • how many people want your good/service
  • the money you have left over after you paid your bills

47. What is demand?

  • the amount of an item you have
  • how many people want your good/service
  • the money you have left over after you paid your bills

48. What is supply?

  • the amount of an item you have
  • how many people want your good/service
  • the money you have left over after you paid your bills

49. Not being able to meet all wants at the same time

  • demand
  • supply
  • scarcity

50. ____________ economic activities add value to raw materials by processing them or changing their form. Ex: wood being made into tables/furniture

  • Primary
  • Secondary
  • Tertiary

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